The security of the Swiss Banking system
Excerpt from OPM Corporation's web site www.taxhavens.us
By Giovanni Caporaso
Many European clients ask us “can we open a bank account in Switzerland?” Their request is “justified” by the geographical convenience of being a neighboring country. But what can be said of its security? Already since the last century, well, let’s say in a little more than ten years, we have been advising against the Swiss banks, not because of the banks themselves, but because the Swiss legal system has always been very condescending in authorizing the exchange of information. In fact, all that an Italian judge had to do was have a friendly colleague in Switzerland to obtain, without much difficulty, the desired banking information. And since tax offenses weren’t typified, it was easy to use a sleight-of-hand to insert “recycling” crimes into the inquiry and the authorization was immediately given. If you want to know more about banking secrecy, offshore banking, Swiss banks and banking privacy, read this article and it will lead you through the secrets of offshore banking.
Swiss banking secrecy, according to the definition of the Swiss Federal Department of the Economy is to “protect the private sphere of the banks’ clients from unjustified intervention by the State.” More specifically, it considers a series of norms that prohibits the communication of clients’ banking data, completely protecting their privacy.
Following international pressures, caused by the economic crisis (this is their excuse), the federal advisor and head of the financial department, Hans-Rudolph Merz announced on March 13, 2009, the revision of the law concerning Swiss banking secrecy adjusting it to the legislative body of the OECD. So, with this, the last barrier has finally fallen. Exchange between the Swiss credit institutions and foreign institutions will be possible after the international treaties are revised, in the case of legitimate suspicions of tax evasion, other than those already accepted for tax fraud. A hard blow to the financial giant!
The Swiss banking system, one of the most important on an international level, surely owes its development to the banking secret introduced in 1934.
At this point, hardly any banks that are safe in relation to protecting your privacy exist, and the safer your money is in solid banking institutions, less secure is your privacy.
To be able to operate offshore you need to get into the intricacy of “complaints” of the banking bureaucrat, or rather, identify the contracting party, determine the holder of the financial rights (or rather, who really benefits from the funds), clear up behind the scenes action and find the reason for the transaction if it seems unusual or if there are indications pointing to money laundering.
Today, you need to keep in mind that other than the great difficulty in opening an anonymous account, you often need to turn to tribulations to keep it open. Understanding the “modus operandi” of offshore banking isn’t easy, among other things because, if you’re “small fry” your transactions will be analyzed by bureaucrats in the career race who will look for “shady dealings” where none exist.
For those who wish to open an offshore account, the first lesson will be filling out the forms for opening an account. If you make even the smallest mistake in your statements, if you write something that the complaint bureaucrats don’t like, or if you declare activities that, although legal, are not looked upon with favor by the bank, the doors will be slammed in your face. For this reason, we advise those who want to open an offshore account to let themselves be guided by an expert in privacy ho knows the secrets of offshore banking and explain how banks think and which internal (not public) regulations and laws they use in deciding which clients they will accept or not, and which activities are considered too risky or not.